WAEC Financial Accounting 2022 Question 3

Question 3

Accounting Equation

Use the following information to answer questions 2 and 3
Years — Current Assets (₦) — Liabilities (₦) — Fixed Assets (₦) — Capital (₦)
2018 — 52,550 — 78,600 — 127,450 — X
2017 — 41,650 — 53,220 — Y — 116,780
The letter Y represents

  1. A.₦211,650
  2. B.₦170,000
  3. C.₦128,350
  4. D.₦94,870
Show the answer and explanation

Answer: C (₦128,350)

Explanation

Fixed assets = capital + liabilities − current assets = 116,780 + 53,220 − 41,650 = ₦128,350.